|FX (CFD)||30:1 (Major Pairs) 20:1 (Others)|
|Indices||20:1 (Major Indices) 10:1 (Others)|
|Bonds, options and metals||10:1 (Maximum)|
You can find out the specific margin of each instrument in the market information sheet on your platform
Why trade with City Index?
4,500+ CFD markets
Commission Free CFDs
Margins from 3.33%
What is leverage?
Trading with leverage means you can obtain the same amount of market exposure with a smaller deposit of the total value of the trade.
Leverage can help magnify your returns if the market moves in the direction that you expect. However, if the market doesn’t move as you expect it can magnify your losses in exactly the same way as your gains.
There is the potential to lose part and more of your investment if you do not manage your risk efficiently and you may lose more than you initially invested.
At City Index we offer up to 30:1 leverage.
Example of a profit
With a 20% margin for just $100 you could get the same exposure using CFDs as a $500 investment in shares. This represents leverage of 5 times, or 5:1.
Option 1 buy shares. If you wanted to buy 500 shares of Company A. at the current share price of $1, this would cost you $500. If the share price goes up by 20c per share, you can sell out of your position at 500 shares x $1.20 equals $600 and make a $100 (or 20%) profit.
Option 2 buy CFDs. If instead you wanted to use leverage with CFDs. With a leverage of 5:1 you would pay 20% of $1 x 500 shares = $100. And if the underlying price rose from $1 to $1.20 you would still make the same profit ($100) as if you had bought the shares.
Example of a loss
Continuing with a 20% margin.
Option 1 sell shares. The current share price is $1 and you bought 10,000 shares. The share price drops to $0.95 so if you sell them you will make a loss of $500 and have $9,500 remaining.
Option 2 sell CFDs. You put in a deposit of $2,000 and use the 5:1 leverage for an open position of $10,000. The share price drops to $0.95 so now the position is $9,500 with a loss of $500.
Trading Support Service
We provide detailed information about every aspect of our service with ongoing account support for every client.
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